free download. Use free acrobat Acrobat Adobe to view this PDF file, no matter how important it is, more needs to be done before countries can benefit from a free trade area. Countries committed to the agreement are expected to present their timetables for concessions for trade in goods and services by next year. Concession schedules outline products and services that countries will no longer tax. Over the period 2012-2016, 43% of intra-African exports were made by industrial products, while they accounted for only 20% of exports to the rest of the world. In 2015, medium and advanced technology products accounted for 25.4% of intra-African trade, but accounted for only 14.1% of African exports to industrialized countries and 13.7% of the continent`s exports to the world (Chart 2). (6) (8) It is essential that African countries commit to further improving their institutional capacity for taxation and redistribution of gas sector profits. These include the integration and harmonization of regulatory measures, the removal of non-tariff barriers to trade and investment, and the facilitation of entry into the formal economy. (6) (8) The scope of afCFTA is broad. The agreement will reduce tariffs between Member States and cover policy areas such as trade facilitation and services, as well as regulatory measures such as hygiene standards and technical barriers to trade.
Full implementation of AfCFTA would transform markets and economies across the region and boost production in the services, manufacturing and raw materials sectors. While full implementation of the agreement is expected to take a few more years, AfCFTA could be an important milestone in the continent`s history and could lay the foundations for a fully integrated African economy in the long term, in which people, goods and services can move freely. and marks the continent`s most ambitious integration initiative to date. Nevertheless, considerable efforts will be required on the part of the signatories to ensure that the benefits of the agreement are fully realized. At present, the level of intra-regional trade is significantly lower than in other regions of the world. Intra-African exports were only 16.6% in 2017, compared with 68% in Europe, 59% in Asia and 55% in North and South America, according to UNCTAD. The creation of regional value chains – supported by the removal of trade barriers between African countries – can contribute to the development of regional industrial capacity and the increased value-added of African exports. Development models that depend on the export of primary raw materials have proven vulnerable due to price volatility.
In 2018, according to UNECA, more than 75% of exports were foreign. For example, cocoa accounts for one-third of Côte d`Ivoire`s export earnings, while crude oil accounts for about 95% of total Nigerian exports. This makes these economies vulnerable to changes in international market prices as well as other external shocks. In addition, it has a negative impact on employment, as mineral goods are less labour intensive than manufactured and manufactured goods. This dependence demonstrates the need to restructure economies in order to achieve a more diversified and sustainable export base. One forecast is that intra-regional trade could increase by 52.3% by 2022 (UN Economic Commission for Africa). The African Union (AU) estimates that trade will increase by 60%. Between 2004 and 2014, intra-COMESA trade increased from $8 billion to $22 billion. Over the same period, CDIC trade increased from $20 billion to $72 billion, and for CAAs from $2.6 billion to $8.6 billion.